Iceland is known for its abundant geothermal energy resources, which are harnessed from the heat stored beneath the Earth's surface. This renewable energy source is generated by volcanic activity, making Iceland one of the leading countries in utilizing geothermal power for electricity and heating. Approximately 90% of Icelandic homes are heated using geothermal energy, significantly reducing reliance on fossil fuels. The country has developed numerous geothermal power plants that convert steam and hot water into electricity. This sustainable energy not only supports local communities but also contributes to Iceland's economy by attracting tourism and promoting environmentally friendly practices.